Filtering fluids as they circulate through automotive systems such as power steering systems, air conditioning systems, hydraulic systems, and the like can significantly increase the lifetimes of such systems and is therefore desirable. In this context, there is a need for a compact in-line or in situ filter that has a single outlet and a first or normal inlet path wherein fluid passes through a filter element before exiting the single outlet and a second or bypass path wherein fluid bypasses the filter element when it becomes clogged before exiting the single outlet. Further, the filter should be easily installable, easily replaceable, and should continue to capture certain types of debris even when operating in its bypass mode. It is to the provision of such a filter that the present invention is primarily directed.